Note from G. A. Choyke to K. L. Oliver on NACDS Convention. Reports conversing with many drug chain execs + presentations made. Impressed on one lost revenues from not having self-service displays in many stores, exec will follow up. Another would like counter displays & will conduct pilferage study.
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PHILIP MORRIS U.S.A.
INTER - OFFICE CORRESPONDENCE
100 Park Avenue, New York, N.Y. 10017
K. L. Oliver
G. A. Choyke
Date: May 28, 1980
Field Trip Report - NACDS Convention & Jack Eckerd Drug Co.
On May 2, I attended the annual NACDS Convention held in Palm
Beach, Florida. Since this convention does not allow exhibits,
social contact and committee activity are important to achieve
company visibility. I served on the Transportation committee
and Gladys assisted the Hospitality committee.
During the course of the convention, Mr. and Mrs. Reardon, Mr.
and Mrs. Titsworth, and Gladys and I had the opportunity to
converse with top executives of dozens of drug chains, many in
their Cabanas. Chains with cabanas were:
Jack Eckerd Drug
Overall, it was a most productive convention. With additional
planning and scheduling of appointments with chain executives,
next year's convention will be even more productive.
ECKERD DRUG HEADQUARTERS - Clearwater, Florida (1,010 stores)
May 9, 1980
Accompanied by A.M.C.S. Fred Nassif, I made a business review
presentation to Neil Roth, Corporate Merchandise Manager, and
Eric Hellman, Associate Merchandise Manager. We discussed non-
compliance problems and solutions for their self-service carton
Neil was very interested in increasing revenues by using our
counter display unit but we advised him that due to average
store volume of less than 400 c.p.w., he could not participate
in both the Plan A and B-1/B-2. We suggested he consider the
B-1 in the 190 stores not currently participating in Plan A.
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K. L. Oliver Page 2
May 28, 1980
Neil was shocked to hear that so many stores did not have carton
fixtures and frankly questioned our source (SPACE). He dictated
a memo, in our presence, to all Regional Managers to survey
stores and advise him of the number of stores not participating
in self-service carton merchandising. He wants to have 100%
participating and 100% compliance. He also will review all
warehouse shipment records and jobber sales to their stores to
determine if Eckerd's average store sales exceed 400 c.p.w.
(Currently, we show 318 c.p.w. average in SPACE.)
Fred re-presented Virginia Slims Lights Regular and Menthol and
Marlboro Lights 100's. Neil was impressed with the potential
lost sales dollar amount and will reconsider authorizing for
warehouses. Fred plans to follow-up on all of the above.
Neil asked my permission (granted) to use information from my
presentation in his next "Newsletter" to their stores.
ECKERD DRUG FLORIDA DIVISION OFFICE - (300 stores)
May 9, 1980
I accompanied Fred on a call to Eckerd's Florida Division Office
Buyer, Bo Langley. We reviewed some of our corporate recommen-
dations with Bo and asked his assistance in gaining distribution
of Virginia Slims Lights and Marlboro Lights 100's. He agreed
to help by requesting same for Florida Division. Bo would like
to see at least two counter displays authorized (Florida Division
now has R.J.R. 80 pack @ $11.00) but has met stiff resistance
due to pilferage concerns. At my suggestion, he will conduct his
own "Tobacco Department" pilferage study since all tobacco items
are keyed separately on register. He promised to let us know the
results. Fred will follow up.
Despite the fact that Eckerd's is the most profitable drug chain
in the United States, they are increasing their interest in ciga-
rette company merchandising dollars. Incidently, Neil remarked
that he appreciates having people from supplier headquarter
offices visit him occasionally.
cc: E. D. Blandford
H. B. Coleman
J. A. Crawford
J. J. Gillis
C. T. Littleton